Donald Trump is in no doubt that slapping tariffs on European steel imports is the right thing for the U.S. to do. "Canada is a secure supplier of aluminum and steel to the United States defense industry, putting aluminum in American planes and steel in American tanks".

"We expect immediate retaliation from the European Union, which, on a net basis, to us serves no positive economic objective", KeyBanc analyst Philip Gibbs said in a note.

Canadian Prime Minister Justin Trudeau said: "These tariffs are totally unacceptable". Mexico's Ministry of Economy went on to say "Mexico reiterates its openness to constructive dialogue with the U.S., its support for the worldwide trading system and its rejection of unilateral protectionist measures".

The European Union should take measures to shield the European steel market from a flood of cheap imports seeking a new destination as the United States impose tariffs on steel, the Dutch arm of Tata Steel said on Thursday. The list of US exports that European Union would impose additional tax on has already been decided, and notified to WTO.

But their hopes came crashing down when US Commerce Secretary Wilbur Ross said the EU, Canada and Mexico would no longer be exempted. That in itself would be nothing new, but the targets of these tariffs were what made Trump's announcement surprising.

Beer, iPhones and plane tickets are all likely to get more expensive in the next few months thanks to President Donald Trump. "But we see no sign of that in this action today by the USA administration".

Speaking to Sky News, the International Trade Secretary said he would not rule out retaliatory counter measures as "you can not look at every global issue through the prism of Brexit".

European Commission's president Jean-Claude Juncker said Mr Trump's action amounted to trade protectionism and Europe would respond with countermeasures.

It's a bad day for world trade. But these must leave our allies saying "with friends like these..."

Mexico's ministry of economy pledged to impose equivalent measures, and included a partial list of USA goods that would face tariffs, including pork bellies, cheese, and produce such as grapes and apples.

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